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Updated: 8:08 AM Jan 7, 2009
UPDATE: Cabell Huntington Hospital Lays Off 40
The cuts come as part of a wide-ranging plan to cut costs at one of Huntington's biggest employers. Posted: 4:02 PM Jan 6, 2009Reporter: Scott Saxton; Michael Wooten Email Address: scott.saxton@wsaz.com; michael.wooten@wsaz.com |
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228 Comments 
Update at 11 p.m.
HUNTINGTON, W.Va. (WSAZ) -- Cabell Huntington Hospital President and CEO Brent Marsteller referred to cutting 40 employees' jobs as "the right thing to do for the future, but it's very difficult."
He said the layoffs ultimately are blamed on the nation's economic emergency.
"In the past ... health care has been kind of isolated from the regular economy, and this is the very -- one of the very few times I've ever seen where the economy really has affected hospitals and the health-care industry," Marsteller said. "There's more people, unfortunately, that do not have health insurance or are under insured, so that hits us in the way of uncompensated care."
That cost the hospital about $45 million last year. Also to blame is the credit crisis. The interest rate on the debt used to build the new North Tower more than doubled in a two-week period, costing nearly an extra $500,000 a month.
"Be leaner -- that's the best way of saying it," Marsteller said. "So we're looking at every area, and our management team throughout the hospital is looking at every line item to see what we can do safely and in an appropriate way to reduce the expenses for our patients."
Despite the job cuts, Cabell Huntington Hospital plans to continue recruiting new doctors.
Overall, the hospital has not seen a reduction in patients. According to the American Hospital Association, however, some hospitals are seeing patient numbers drop 40 percent because families just can't afford health care.
Original story
HUNTINGTON, W.Va. (WSAZ) -- Cabell Huntington Hospital announced Tuesday that it eliminated forty positions as part of an overall plan to cut costs.
The jobs are supervisors and management personnel. A release from the hospital says none of the affected employees are involved in direct patient care.
CHH President and CEO Brent Marsteller said these moves are in response to unstable financial markets, less reimbursement for health care and rising costs.
Marsteller said the hospital provided $45 million in uncompensated and charity care to patients in 2008. Marsteller said that number has been increasing due to the poor economy. He also pointed to increasing costs for supplies and medicine, along with the increased cost of employee benefits.
In 2008, CHH opened a new wing for patients that increased the company's debt by $100 million. The hospital also performs several services at a financial loss, such as trauma care, burn intensive care, pediatric intensive care and neonatal intensive care. Those services aren't cut because of the importance to the community, according to the release.
"Our hearts go out to these employees and their family members, but these changes are necessary for our hospital to remain strongly positioned to fulfill its mission of caring for the community and providing leading-edge medical care,” CHH President Brent Marsteller said.
Marsteller said the hospital implemented a plan to cut costs and increase efficiency. The release did not elaborate on those details.
Cabell Huntington Hospital employs more than 2,000 people. The forty affected employees will get severance packages and job placement assistance.
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Latest Comments
Got it from a good source this weekend that the word family is to no longer be used at CHH. Brent, which color do wear and on what day of the week. Please let us all know so we can figure out what team we play on. Or is there a team? No family, next week no team, then what?
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Just to let all know that the 40 that were let go from CHH are surviving, & that is because we ARE SURVIVORS!!!! CHH will not & never will appreciate any one that CARES!!! Yes there are hospitals letting employees go but I say cut out the bonuses and the million dollar wages!!! All chiefs and no indians does not make for a pretty situation! My prayers to the 40 ...hang in there....better things will be coming for each of you.
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It truly is so sad that so many lost their jobs . But, just to put the record straight, SMMC, a non union hospital is NOT in trouble. I am sure that in the near future, they will do whatever they can do to cut cost, however, not at the expense of the patients. Each person has a preference of the hospital, doctor, or even grocery store they will use. I really doubt that the care at chh will be much different. WE chose not to have union at smmc, and so far we are thriving. The unit I work on has 25 beds, and they are always full. So I am not jealous of any other facility, there is a need for all.
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